REWE Group Sustainability Report 2017

Energy

GRI 302: EnergyManagement Approach

REWE Group continuously works to reduce its energy consumption per square metre of sales area. This is one of the key contributions that REWE Group makes to environmental protection and the conservation of resources. REWE Group primarily uses energy for refrigeration and lighting purposes in its stores. Fuels are also consumed when goods are transported. REWE Group has set a goal and defined a key performance indicator (KPI) regarding its consumption of electricity, the largest source of energy usage at around 58 per cent:

  • KPI 1: lowering electricity usage per square metre of sales area (as measured in kWh/m2) by 7.5 per cent between 2012 and 2022
2012 2013 2014 2015 2016 2017
KPI 1 Germany+Austria Change compared to 2012 -0.7 % -3.9 % -4.3 % -5.3 % -6.6 %
KPI 1 Germany+Austria [kWh / m²] 333.60 331.39 320.55 319.36 316.06 311.51

REWE Group reduced its specific energy consumption in Germany and Austria by 6.6 per cent between 2012 and 2017.

The reduction of energy usage per square metre of sales area plays a key role in efforts to reach REWE Group’s climate goal . The foundation of REWE Group’s systematic energy-efficiency activities is the group-wide energy management system that the company has been applying with the help of the Hamburg-based Energie-Handels-Gesellschaft (EHA) since 2008. The energy service provider – which became a wholly owned subsidiary of REWE Group in 2014 – installs measuring devices in the company’s stores and warehouses that facilitate central, up-to-date monitoring of energy usage. In addition, a monitoring platform called FRIGODATA keeps close watch on temperature and energy data.

In 2015, the company began to introduce a central energy management system based on ISO 50001 in Germany, which has been certified since the end of 2016. The system covers the entire REWE Combine in Germany with all sales lines and about 5,000 locations. This includes the food retail stores, DIY stores, travel agencies, logistics centres, administrative offices and online shops. The production operations Wilhelm Brandenburg and Glockenbrot Bäckerei have been operating an energy management system certified in accordance with ISO 50001 since 2014. In April 2016, REWE International AG in Austria received ISO 50001 certification for about 2,100 stores (BILLA, MERKUR, PENNY Austria and BIPA) and the entire logistics operation. BILLA Czech Republic, BILLA Slovakia, BILLA Bulgaria, IKI Lithuania and PENNY Romania have also been ISO 50001 certified since spring 2017. Certification is planned in 2018 for all other countries of REWE International AG. In taking this approach, REWE Group is bundling its many energy-related activities. At the same time, it is meeting the standards of the European Energy Efficiency Directive and fulfilling legal requirements in individual countries (in Germany, the amended version of the Energy Services Act (Energiedienstleistungsgesetz)).

The new management structure is a significant milestone to further optimise energy consumption. The detailed tracking of energy consumption will enable central energy goals and subgoals to be defined and monitored. In addition, the link between measured energy usage and implemented programmes can be better understood and monitored. High-impact solutions can be identified and refined. Local employees play an important role in addition to administrative employees and energy managers. Through their actions on the job, they can make a key contribution to the success of the measures and serve as influential providers of improvement ideas. REWE Group has set up a central e-mail address to which employees can send their questions, ideas and suggestions.

GRI 302-1: Energy consumption within the organization

Energy consumption involves electricity, especially the power used for refrigeration and lighting purposes, and the fuel consumed to transport products from warehouses to stores and to deliver goods to online customers. This part of logistics is a category that the company can influence directly. As a result, consumption by the group’s own vehicles as well as those of external service providers in Germany and Austria is addressed here.

Absolute energy usage by REWE Group rose by about 5.8 per cent between 2015 and 2017. Among other things, this development is based on the acquisition of Kaiser’s Tengelmann branches and the establishment of the Supermärkte Nord Vertriebs GmbH & Co. KG (SuNo). Since the acquisition of Kuoni Travel Holding Ltd. in 2015, aircraft from Novair also have to be considered, which are also responsible for a 2 per cent increase in fuel consumption between 2015 and 2017.

The largest amount of total energy consumption in 2017 was attributed to electricity, at about 58 per cent, followed by natural gas and fuels for lorries and cars (including external logistics) at 15 per cent each.

Energy consumption within the organisation (in GWh)
2015 2016 2017 Change 2015–2017
Absolute Absolute Absolute Absolute per cent
Electricity 3,704 3,729 3,831 +126.7 +3.4 %
Heating oil 92 92 82 -10.5 -11.5 %
Gas (natural and liquefied gas) 1,021 1,014 1,024 +2.9 +0.3 %
Self-produced renewable energies 15 9 8 -6.4 -43.8 %
District heating 280 275 285 +5.9 +2.1 %
Fuels (lorries/cars) 945 1,005 1,057 +112.0 +11.8 %
Jet fuel 153 295 286 +132.5 +86.4 %
Total 6,210 6,419 6,573 +363.0 +5.8 %
Total excluding jet fuel 6,056 6,124 6,287 +230.5 +3.8 %

1TJ | 0.2778GWh, 1MJ/m² | 0.2778kWh/m²

Scope: REWE Group, including partner retailers. Units that left REWE Group in 2017 were excluded: BILLA Croatia, IKI. The consumption data from Kuoni Travel Holding Ltd. have been included in the figures since September 2015 and those from the Kaiser’sTengelmann branches and the Supermärkte Nord Vertriebs GmbH & Co. KG (SuNo) since 2017. Due to rounding, there may be deviations in totals.

Self-produced renewable energies include: solar power, photovoltaic energy, geothermal energy, wind energy, wood pellets and organic heat.

Scope: REWE Group, including partner retailers. Units that left REWE Group in 2017 were excluded: BILLA Croatia, IKI. The consumption data from Kuoni Travel Holding Ltd. have been included in the figures since September 2015 and those from the Kaiser’sTengelmann branches and the Supermärkte Nord Vertriebs GmbH & Co. KG (SuNo) since 2017.

Self-produced renewable energies include: solar power, photovoltaic energy, geothermal energy, wind energy, wood pellets and organic heat.

Energy consumption within the organisation – consumption share 2017 ✓
Electricity 58.3%
Heating oil 1.2%
Gas (natural and liquefied gas) 15.6%
Self-produced renewable energies 0.1%
District heating 4.3%
Fuel (lorries/cars) 16.1%
Jet fuel 4.4%

Scope: REWE Group, including partner retailers. Units that left REWE Group in 2017 were excluded: BILLA Croatia, IKI. The consumption data from Kuoni Travel Holding Ltd. have been included in the figures since September 2015 and those from the Kaiser’sTengelmann branches and the Supermärkte Nord Vertriebs GmbH & Co. KG (SuNo) since 2017.

Self-produced renewable energies include: solar power, photovoltaic energy, geothermal energy, wind energy, wood pellets and organic heat.

in %

GRI 302-3: Energy intensity

Energy intensity covers location-related use of electricity and heat. Despite the increase in absolute energy consumption during the reporting period, specific energy consumption (energy consumption per square metre of sales area) of REWE Group fell by 2.9 per cent from 2015 to 2017. This development can be attributed to numerous electricity efficiency measures, such as the use of LED lighting (see KPI 1 and the table “Steps to lower electricity usage”).

Energy intensity
Unit 2015 2016 2017 Change
2015–2017
Absolute energy consumption in GWh 5,111 5,119 5,230 +2.3 %
Energy consumption per square metre of sales area in kWh/m² 471.0 466.3 457.3 -2.9 %

1TJ | 0.2778GWh, 1MJ/m²| 0.2778kWh/m²

Scope: REWE Group, including partner retailers. Units that left REWE Group in 2017 were excluded: BILLA Croatia, IKI. The consumption data from Kuoni Travel Holding Ltd. have been included in the figures since September 2015 and those from the Kaiser’sTengelmann branches and the Supermärkte Nord Vertriebs GmbH & Co. KG (SuNo) since 2017. Due to rounding, there may be deviations in totals.

GRI 302-4: Reduction of energy consumption

To systematically save electricity and reduce emissions, the company works with Hamburger Energie-Handels-Gesellschaft (EHA) to monitor electricity and gas consumption in the stores supplied by EHA. In 2016, REWE Group began to use the new energy management system ISO 50001 in Germany and Austria. On the basis of collected data, the energy managers of REWE Group examine current and planned consumption levels and then propose optimisation measures. These measures are primarily designed to optimise lighting, refrigeration, heating and ventilation systems. REWE Group is also working to reduce its use of heat. During the reporting period, REWE Markt GmbH conducted potential-identification analyses to develop optimisation measures.

Lighting

Lighting in stores affects customers’ moods and product presentations. As a result, pleasing lighting becomes an essential part of the shopping experience. At the same time, lighting is responsible for about 25 per cent of electricity consumption in food stores and around 60 per cent in toom Baumarkt DIY stores. To reduce this total, energy management is devising efficient lighting concepts that address the lighting needs of the sales lines. LEDs play a major part in this effort by saving between 30 per cent and 45 per cent of the electricity required by lighting systems. In 2013 and 2014, the sales lines of REWE Group began to systematically switch to LED lighting in its stores. A group-wide project was initiated to use only LEDs (including retrofit solutions) for new and replacement systems. This project also involved developing special lighting concepts for use in trade that occasionally required new technical solutions. Tremendous advances in the light colour and life span of LED lighting systems have been achieved in recent years. As a result, nothing stands in the way of their widespread use any longer and REWE Group will use new LED lighting concepts in all new and remodelled stores.

Refrigeration

Refrigeration systems consume the most power in grocery stores. For this reason, they are a focal point of efforts to lower energy consumption. Optimised refrigerated display cases use 20 per cent to 40 per cent less electricity for cooling purposes. Glass doors installed on refrigerated display cases are a visible, highly effective way to cut energy consumption. Such doors are already standard for meat products. These systems will also be used for dairy products in new stores and large remodelling projects.

One other key factor is regular maintenance and professional management of refrigerating systems. These systems can be energy efficient only if the refrigeration equipment is optimally operated. As the range of fresh and convenience products grows in stores and as refrigerating needs rise with them, energy-efficient refrigerated display cases will become increasingly important in the future.

Every two years, the REWE and PENNY sales lines invite representatives from refrigerating companies and system suppliers to a refrigerating forum that gives participants an opportunity to discuss their experiences. During presentations and workshops, the participants delve into such topics as energy optimisation and operational and temperature reliability. The Austrian sales line BILLA presents an energy efficiency award to refrigeration companies as part of its refrigeration partner conference.

Steps to lower electricity usage
Steps Reduced electricity consumption (GWh)
2015 2016 2017
Lighting
Transition of lighting systems to LED, optimisation of light management, reduction of turn-on times
9.3 27.2 47.8
Refrigeration
Use of glass on dairy-product display cases and doors on freezers, retrofitting of glass doors, optimisation/upgrading of system technology, replacement of refrigeration systems and energy-efficient display cases
16.3 12.5 19.8
Improvements in the technology of other systems particularily in production 0.6 0.1 2.2
Total savings 26.1 39.7 69.7

*1TJ | 0.2778GWh, 1MJ/m² | 0.2778kWh/m²

Companies of REWE Group in Germany and Austria including partner retailers. Units that are no longer part of REWE Group were excluded during the reporting period in terms of the scope.

The measures taken by the units of REWE Group in Germany and Austria lowered electricity usage by about 70 GWh in 2017 and by 40 GWh in 2016. The use of LED lighting systems contributes largely to our energy savings. Once again, the savings we produced in 2017 were well above the level we achieved in previous years. The use of LEDs in a wide range of areas represents nearly 70  per cent of total savings at 48  GW. Refrigeration is responsible for about half of electricity consumption at grocery stores. Many refrigeration steps were also taken during the reporting period to reduce cooling losses. An increasing number of steps are also being taken in other areas like IT infrastructure, air conditioning and other facilities, particularly those used in production.

Logistics and Product Transport

REWE Group Logistics ensures that the company’s stores always have the products they need. This operation is supported by a complex transport and warehouse system that ensures product availability, quality and freshness. Transport-related emissions cause about 12 per cent of REWE Group’s total greenhouse gas emissions in Germany and Austria. REWE Group is taking the following steps to cut these emissions: strategic reduction of the distance between the warehouses and the stores, increased vehicle utilisation, reduced emissions per kilometre through the use of different logistics concepts, use of more efficient technology and modified driver behaviour.

In 2017, then REWE Group warehouse network infrastructure was further optimised; this included opening or taking over two new REWE regional warehouses in Berlin and Kiel and constructional modernisation and reorganisation measures at several other warehouse locations. In addition to the improvements in the warehouse structure, forecast techniques and route planning are continuously being improved. As a result, vehicle utilisation of the entire lorry fleet is above 90 per cent with regard to the vehicles in service.

REWE Group conducts training programmes in which its drivers learn petrol-saving techniques. It is also implementing a company-wide system for monitoring fuel usage. Despite contrary trends (such as increasing traffic on the roads), in the 2017 reporting year average fuel consumption was kept almost at the same level as the previous year.

To further reduce the carbon footprint of its vehicle fleet, REWE Group continuously upgrades its vehicles. At the end of 2017, the share of vehicles that meet the Euro 6 emission standard was 35 per cent of the company’s entire fleet of lorries. Another key part of REWE Group’s sustainability efforts involves testing alternative drive technologies to determine their suitability, practicability and efficiency within REWE Group Logistics. An electric lorry is being used in the Berlin metropolitan area, and REWE Region Central is employing five lorries powered by natural gas. In Austria, three lorries with organic-fuel drive systems and three e-hybrid lorries are being used.

REWE Group is also involved in research that is being conducted into promising logistics concepts. In the research project “Geräuscharme Nachtlogistik” (GeNaLog, silent night logistics), which was concluded in the middle of 2017, it was shown that, with the current state of the art, it is possible to operate low-noise logistics at night. With the integration of a fully electric lorry and using smart processes and low-noise transport aids, the project showed that night logistics could potentially be a solution for the logistical challenges of inner cities.

Employee Mobility

Mobility is another area where energy consumption can be reduced. For example, it is possible to structure the mobility budget for entitled employees individually so that they choose a smaller car, and the amount saved could be used elsewhere. Users of electric vehicles receive a monthly bonus of 150 euros in addition to their mobility budget. The monthly supplement for hybrid vehicles is 25 euros. To encourage mobility with bicycles, all employees of REWE Group in Germany have been able to purchase a company bike since November 2016 as part of a deferred-compensation model. Employees can use the bicycles to commute to work and enjoy in their leisure time.

More topics:

GRI 303

Water

GRI 305

Climate Protection

GRI 306

Waste

REW 1

Green Building